Arizona Real Estate License Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

Question: 1 / 1505

If broker Quinn discusses raising his commission rates at a convention, what might he be guilty of?

Allocation

Price-fixing

When broker Quinn discusses raising his commission rates with other brokers at a convention, he may be engaging in price-fixing. Price-fixing occurs when competitors agree on prices rather than letting the market determine them through competition. Such agreements can limit competition, leading to higher prices for consumers. In the context of real estate, commissions should be set individually and independently by brokers, not collectively decided through discussions that imply coordinated pricing strategies.

The other options are less applicable in this context. For instance, allocation pertains to agreements between businesses to divide markets or customers, which is not the case here. Securities violations relate to regulations governing investment securities, which do not directly apply to commission discussions among brokers. The notion of 'Nothing' suggests there’s no wrongdoing, but any discussion that may imply coordination on commission rates could indeed raise legal and ethical concerns related to antitrust laws.

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Securities violations

Nothing; he did not violate any rules or laws

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